Re: Student loans in default! Advice please?

They won't be able to do an in-school deferrment until September. However, you may qualify for one of the many other deferrments or a forebarence. You don't say why the loans went into default except that they were previously deferred so I cant tell you what you may qualify for.

If you dont qualify for a deferrment or forebarence, you should be able to work something out. If you only took one semester off, this should be relitively easy to do. Remember, the DOE doesnt want students to default and you will have an easier time fixing this before they transfer it to collections.

Also, if you don't do this now, you can forget about taking out any additional loans for September.

Re: Student loans in default! Advice please?

I just got a letter from the DOE and it says that my loans are in default ( 4 loans, approx.10,000 total).

they were in Deferrment but I took this semester off and am going back again inSeptember.

Will they put them into deferrment again BEFORE the actual sememster starts?

Do I call and see what I can do? Or do I just TRY and get current

I just got a letter from the DOE and it says that my loans are in default ( 4 loans, approx.10,000 total).

they were in Deferrment but I took this semester off and am going back again inSeptember.

Will they put them into deferrment again BEFORE the actual sememster starts?

Do I call and see what I can do? Or do I just TRY and get current?

thanks in advance

With loans in default, you will no longer qualify for deferments or forebearances. You also are no longer eligible for any federal financial aid. You cannot bring a default current...the account has to be paid off to resolve the default.

How long where you out of school for? It take 280 days of non payment for a loan to default and you should have received numerous calls and letters warning you of the impending default.

Re: Student loans in default! Advice please?

I defaulted b/c I was in a financial crisis for a little bit. The letter says I am 180 days behind.

I dont undertsand WHY I cant become current ever again. Doesnt make sense to me.

I was in one class this past semester but had to withdraw b/c of a family illness.

AFAIK, you CAN become current. It will just have to have happen after you've rehabbed your loans. I am assuming that these are Federal loans?

According to the 1998 amendment to the HEA, you default after 270 days, not 180. And even then, it often takes several more days for the servicer/lender to file a claim with the DoE (or guarantor, depending on the loan).

Are you SURE you've completely defaulted? And it wasn't just a warning letter stating that you were in DANGER of defaulting????

Can you post a snippet or two from the letter ... specifically the paragraphs that lead you to believe you've actually defaulted (and aren't "just" in danger of defaulting)?

Get your patootie on the phone and make arrangements NOW!! The sooner you get back on track, the sooner you won't get whacked in the head with a rolled up Sunday's New York Times!! I may sound like I'm lecturing you, and if I do, I AM ... ask me why!! We have 120+ days on our SL and it has tanked our scores to the low 600s!!

(It may not seem like a huge deal now, but, trust me, it ain't fun!!)

I've heard that you can't be considered in "default" if you're in communication with your servicer/lender ... don't remember WHERE I heard that, but I did.

Anywho, yes, they can take your ESP, but chances are, unless you've defaulted, they won't. At least, we were close to default and they didn't take ours. And all the stories I've heard of tax refunds (or ESPs) being offset dealt with defaulted SLs, not just delinquent ones. You can, if you're really worried and want more than the opinion of a stranger in a forum, call the Treasury Offset hotline: 1-800-304-3107. You'll have to verify your identity (SSN and zip code, I think).

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